Chart of the Week

Sector Sum Indicator is Warning Stock Market is Risky. The sector sum indicator measures the number of bull trends among the 45 industry sectors to determine market risk, and whether the market is about to reverse itself. The chart from Investors Intelligence shows the indicator is close to +30, which means most of the 45…

Hindenburg Omen and Titanic Syndrome Could Signal Big Trouble for Stock Market.  We’re obviously not talking about the German airship that went down in flames in New Jersey nor the “unsinkable” British passenger liner that hit an iceberg and sank. What we re talking about is sets of conditions in the stock market that historically…

Money market assets are rising quickly…not necessarily a buy signal. The table below shows the other months when the 12-month rate of change in money market assets first exceeded 25%. It wasn’t much of a signal in 1989, with a gyrating market over the next year. It was a great buy signal in ’95 and…

There’s Trouble Simmering Below Surface of  Record Nasdaq Index Highs.  The Nasdaq index record highs are being propelled by a decreasing number of stocks that compose the index. That means things are not nearly as healthy for Nasdaq stocks in general as the record highs would suggest, says Jason Goepfert of SentimenTrader. Put another way,…

The chart below shows that many stocks are priced above their replacement costs and companies are buying back stock at high prices above replacement value. So why do companies continue to pay ridiculously high prices above replacement cost for their own stocks? That’s because they are trying to prop up earnings at any cost. That’s…